Convertible Loan Interest Deduction Calculator
For drop-top loans — no practicality test in the statute.
The short answer: At the numbers below, the deduction is $3,300, worth $396 at 12% ($15 per paycheck).
New, US-assembled vehicle only
Modified Adjusted Gross Income
Car Loan Interest Deduction
$3,300
✅ You qualify for the full deduction
⚠️ This calculator provides estimates for informational and educational purposes only. It is not tax advice. Results are based on the One Big Beautiful Bill Act (OBBBA) and IRS Schedule 1-A. Consult a qualified tax professional for your specific situation.
Fun Cars Deduct the Same
The statute covers qualified vehicle loans, not qualified lifestyles.
- • Interest to $10,000 deductible
- • Phase-out by MAGI, not by roof mechanism
- • Summer-only storage insurance doesn't interact
Worked Example
MFJ buyer, $3,300 of interest.
- • Deduction $3,300; $396 at 12%
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Frequently Asked Questions
Can I deduct convertible loan interest?
Yes — the deduction applies to any qualified vehicle loan.
Weekend-only car — still deductible?
Yes — personal-use vehicle loans qualify; there's no primary-vehicle requirement.